An equal increase in government purchases and taxes will cause
A) an increase in real GDP.
B) no change in real GDP.
C) an increase in the budget surplus.
D) a reduction in cyclically adjusted budget surplus.
Correct Answer:
Verified
Q153: The tax multiplier
A)is negative.
B)is larger in absolute
Q154: Suppose real GDP is $13 trillion,potential real
Q155: Suppose real GDP is $12.1 trillion and
Q156: Suppose real GDP is $13 trillion,potential real
Q157: The tax multiplier is calculated as "one
Q159: The multiplier effect following an increase in
Q160: Suppose real GDP is $14 trillion and
Q161: Describe the differences (in sign and relative
Q162: The use of fiscal policy to stabilize
Q163: The crowding out of private spending by
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